Sandisk (NASDAQ:SNDK) Stock Price Down 8.5% - Here's Why

Key Points

• Sandisk shares fell 8.5% to about $1,260.93 in a sector-wide memory-stock selloff ahead of the company’s October 29 earnings report, as investors questioned the sustainability of AI infrastructure spending.
• Despite the decline, analysts remain broadly positive: Mizuho maintained a Buy rating with a $2,050 target, while Sandisk’s average analyst target is $2,120.65. Optimism is supported by firm NAND pricing, AI-server demand and tight supply conditions.
• Investors are also weighing valuation and cyclical risks, including Chinese competition and potentially weaker AI capital spending. Sandisk has authorized a $14 billion share buyback, while insiders have sold shares under pre-arranged trading plans.

Sandisk Corporation (NASDAQ:SNDK - Get Free Report) was down 8.5% on Thursday. The stock traded as low as $1,244.60 and last traded at $1,260.93. 10,138,442 shares changed hands during mid-day trading, a decline of 32% from the average session volume of 14,944,800 shares. The stock had previously closed at $1,378.22.

Trending Headlines about Sandisk

Here are the key news stories impacting Sandisk this week:

• Positive Sentiment: Mizuho analyst Lloyd Walmsley maintained a Buy rating and set a $2,050 price target, citing firm NAND pricing and upside from enterprise solid-state drives. Analyst Lloyd Walmsley Initiates Buy on SanDisk, Targeting $2,050 on Firm NAND Pricing and Enterprise SSD Upside
• Positive Sentiment: Several previews remain optimistic ahead of Sandisk’s October 29 earnings report, pointing to favorable NAND supply-demand conditions, AI-server demand, and the possibility of stronger-than-expected results and guidance. NAND demand has reportedly exceeded supply, with shortages potentially persisting through 2028. Prediction: Sandisk Stock Will Soar After Oct. 29
• Neutral Sentiment: Sandisk has gained dramatically since becoming an independent public company in February 2025, but the memory market is highly cyclical and volatile. The stock’s elevated valuation and distance below its recent peak make it particularly sensitive to changing expectations. Up 3,700%, Should You Buy Sandisk Right Now?
• Negative Sentiment: Memory and storage shares, including Sandisk, Western Digital, and Micron, faced a sector-wide selloff ahead of earnings. Investors are questioning whether the cost of AI infrastructure will limit future chip demand and spending, overriding the positive impact of Mizuho’s price target. Sandisk Sinks as Memory Selloff Deepens Ahead of Earnings
• Negative Sentiment: Additional risks include concerns about Chinese competition and the possibility that elevated AI capital expenditures could weaken if customers become more cost-conscious. These worries are driving investors to lock in gains despite currently favorable NAND fundamentals. SanDisk Stock Drops as AI Cost Worries Mount

Wall Street Analyst Weigh In

SNDK has been the subject of several research reports. China Renaissance boosted their price objective on shares of Sandisk from $2,000.00 to $2,250.00 and gave the company a "buy" rating in a research report on Wednesday, August 19th. Raymond James Financial raised their target price on shares of Sandisk from $1,470.00 to $2,000.00 and gave the stock an "outperform" rating in a research report on Thursday, August 6th. BNP Paribas Exane decreased their price target on shares of Sandisk from $1,900.00 to $1,400.00 in a research note on Thursday, August 6th. Sanford C. Bernstein reiterated an "outperform" rating and issued a $3,000.00 price target (up from $1,700.00) on shares of Sandisk in a report on Thursday, August 6th. Finally, Bank of America boosted their price target on Sandisk from $2,100.00 to $2,500.00 and gave the company a "buy" rating in a report on Wednesday, July 1st. Three research analysts have rated the stock with a Strong Buy rating, twenty-one have assigned a Buy rating and four have issued a Hold rating to the company's stock. According to MarketBeat, Sandisk has an average rating of "Moderate Buy" and an average price target of $2,120.65.

Sandisk Price Performance

The firm has a market capitalization of $182.24 billion, a P/E ratio of 17.30, a P/E/G ratio of 0.14 and a beta of 5.23. The stock's fifty day simple moving average is $1,608.84 and its 200 day simple moving average is $1,518.14.

Sandisk (NASDAQ:SNDK - Get Free Report) last announced its earnings results on Wednesday, August 5th. The data storage provider reported $39.25 earnings per share for the quarter, beating the consensus estimate of $33.28 by $5.97. The company had revenue of $8.96 billion during the quarter. Sandisk had a net margin of 56.47% and a return on equity of 87.84%. Sandisk's revenue was up 371.6% on a year-over-year basis. During the same quarter last year, the business earned $0.29 earnings per share. Sandisk has set its Q1 2027 guidance at 44.000-46.000 EPS. As a group, sell-side analysts forecast that Sandisk Corporation will post 208.94 EPS for the current fiscal year.

Sandisk announced that its Board of Directors has approved a share buyback program on Wednesday, August 5th that permits the company to repurchase $14.00 billion in outstanding shares. This buyback authorization permits the data storage provider to buy up to 6.6% of its stock through open market purchases. Share buyback programs are generally an indication that the company's leadership believes its shares are undervalued.

Insider Transactions at Sandisk

In related news, CFO Luis Visoso sold 1,000 shares of Sandisk stock in a transaction dated Tuesday, September 15th. The stock was sold at an average price of $1,568.83, for a total transaction of $1,568,830.00. Following the completion of the sale, the chief financial officer owned 130,976 shares of the company's stock, valued at $205,479,078.08. The trade was a 0.76% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO David Goeckeler sold 33,841 shares of the company's stock in a transaction that occurred on Thursday, September 17th. The shares were sold at an average price of $1,574.21, for a total value of $53,272,840.61. Following the completion of the sale, the chief executive officer owned 382,865 shares in the company, valued at approximately $602,709,911.65. This represents a 8.12% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 77,899 shares of company stock worth $121,159,122 in the last 90 days. 0.29% of the stock is owned by company insiders.

Hedge Funds Weigh In On Sandisk

Several hedge funds and other institutional investors have recently bought and sold shares of the business. Atomic Invest LLC purchased a new stake in shares of Sandisk in the 2nd quarter valued at $25,000. Dunhill Financial LLC purchased a new stake in Sandisk in the second quarter valued at $30,000. Mowery & Schoenfeld Wealth Management LLC acquired a new stake in Sandisk during the 2nd quarter worth about $32,000. Kilter Group LLC acquired a new stake in Sandisk during the 2nd quarter worth about $32,000. Finally, KERR FINANCIAL PLANNING Corp purchased a new position in shares of Sandisk during the 2nd quarter valued at about $34,000.

Sandisk Company Profile

SanDisk Corporation offers flash storage solutions. The Company designs, develops and manufactures data storage solutions in a range of form factors using flash memory, controller, firmware and software technologies. The Company operates through flash memory storage products segment. Its solutions include a range of solid state drives (SSD), embedded products, removable cards, universal serial bus (USB), drives, wireless media drives, digital media players, and wafers and components. It offers SSDs for client computing applications, which encompass desktop computers, notebook computers, tablets and other computing devices.

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